Result 2019:
13.09

Crude oil
Million Tons

10.20

Gas exploited
Billion M3

22.54

Electricity
Billion KWhs

1.577

Fertilizer
Million Tons

11.500

Petroleum
Million Tons

10 outstanding highlights of Petrovietnam in 2020

1. Successfully organized congresses at all levels and the 3rd Party Congress  of Vietnam National Oil and Gas Group for 2020 – 2025 term

The Party Committee of the Group directed to successfully organize 987 congresses of the Party committees, subordinate branches and the third Party congress of Vietnam National Oil and Gas Group for 2020-2025 term, ensuring solemnity, safety, practicality in the context of increased prevention and control of Covid-19 epidemic.
The congress was conducted under the motto of “Courage - Responsibility - Solidarity - Innovation – Action”, through the Resolution defining the overall goal of “Building a comprehensively strong Party Committee, developing Vietnam National Oil and Gas Group to play pivotal, key and leading role, with strong financial potential and advanced science and technology; high competitiveness, successfully implementing the Petroleum Industry Development Strategy. Focused on developing the main production and business fields: oil and gas exploration and production, gas industry, oil and gas processing, electricity and renewable energy industry, high quality oil and gas technical services. Preserved and developed capital sources; associated production and business activities with environmental protection, national defense and security, and protection of national sovereignty at sea”. 

 

2. Remarkably overcame the double crisis caused by the Covid-19 pandemic and the deep fall in oil prices by formulating promptly and implementing effectively the dual impact response package

2020 was the most difficult year in the development history of Vietnam National Oil and Gas Group. In that situation, the Group took the initiative, assessed and took positive and drastic actions in response to the double impact; promptly issued a package of solutions to respond to clear and overall objectives and solutions for 5 groups: management; market; finance; invest; mechanisms and policies, specific to each field of operation of the Group, with focus on three most heavily affected areas: oil and gas exploration and production; oil and gas processing, and high quality oil and gas technical services; steadfast in the guiding motto of “Managing fluctuations, optimizing values, promoting consumption, making efforts to overcome difficulties, seizing opportunities, and safely reaching the destination”. 

As a result, all activities of the Group were ensured to be safe, the whole Group had no cases of Covid-19 infection; financial security was guaranteed, cash flow was kept stable, achieved much better profit than the decline in oil prices; production and business activities were operated stably in the epidemic conditions, the whole Group reduced costs by 11,9 billion VND (exceeding 28.9% of the year plan). While most of the major oil and gas corporations/ companies in the world suffer losses and bankruptcy, Petrovietnam is one of the few oil and gas companies with spectacular and positive profits to overcome the difficulties of the double crisis. 

3. Overfulfilled many important targets and plans of 2020

Oil and gas production activity was optimized, in accordance with technical conditions, at the same time economic losses were minimized when oil prices plummeted. Some important targets of the Group were fulfilled ahead of the whole year schedule from 19 days to 6 months (Reserves increase, oil production, fertilizer and petroleum production …). The Group’s financial targets achieved more positive results compared with the decline in oil prices and the negative impact from the Covid-19 pandemic. The total revenue of the Group reached 566 trillion VND; total consolidated pre-tax profit was 17.5 trillion VND; completed the budget payment plan (83 trillion VND), making an important contribution to the country’s GDP growth and the State budget balance. Most of the production units overfulfilled the output target; 12 units fulfilled and overfulfilled the consolidated pre-tax profit target; 18 units fulfilled and overfulfilled the target for the State budget payment. 

4. The Group’s corporate management system has been strengthened and completed     

The Group has standardized and officially issued the Management Regulations in the form of E-Book (applied from 1st July 2020); deployed digital signature and ERP project, then applied throughout the Group. 

From the renovation and improvement of corporate management efficiency, Petrovietnam continued to be rated BB+ by Fitch Ratings; and ranked in the Top 500 largest enterprises in Vietnam for 10 consecutive years by Vietnam’s top rating organizations and at the top of the Top 500 most profitable enterprises in Vietnam for 3 consecutive years.

5. There is new important oil and gas discovery, oil and gas reserves have increased to the highest level since 2016

With the discovery of oil and gas reserves at Ken Bau field located in Block 114 (over 11.86 million tons equivalent), and the contribution to increasing reserves from the fields of Bach Ho, Thien Nga, Ca Tam helped the reserve increase target “reach the destination” right from the beginning of June 2020 - the first time to offset the production output since 2016. Most recently, on 25th December 2020, SV-1X exploration well at Soi Vang structure, block 16-1/15 received industrial oil flow of 560 m3 per day that was good news on the year-end days and compensated for non-stop efforts of oil and gas workers in 2020.

6. Project investment and operation of oil and gas projects have achieved many positive results

In extremely difficult and socially isolated conditions, the Group has synchronously implemented solutions to complete and put a number of key projects into operation such as platform BK-21 and completed construction works connecting the field, put into operation 28 days ahead of schedule; Sao Vang central processing platform is a key project in the oil and gas engineering field of great significance in terms of economy, national defense and diplomacy, receiving the first gas flow on 16th November 2020. These are two works honored to welcome the XIII Congress of the Party. 

Synchronized Unit 1 of Song Hau 1 Thermal Power Plant into the national electricity system on 26th November 2020; LNG Thi Vai storage project progressed beyond the plan.

Successfully deployed the platform repair and demolition of Dai Hung well, put it into operation and re-exploited it to ensure safety. Completed the 4th overall maintenance of Dung Quat Oil Refinery, brought the plant back to operation on schedule, with good quality, lower cost than expected. Thereby, it has proven the ability to well perform oil refinery maintenance of the service units in the Group. 

Production and export of fertilizers reached record levels (production of the whole year reached 1.8 million tons, exceeding 15% of the plan, reaching the target of the whole year 1 month 17 days ahead and exports reached over 371 thousand tons, highest ever), marking an important breakthrough in the strategy of reaching foreign markets in the field of fertilizer production and trading.

7. Businesses/ projects with difficulties have many positive changes  

The positive results from Dinh Vu Polyester Plant in recent years have been recognized and appreciated by the Government. In 2020, VNPOLY cooperated with SSFC partner for a long-term master plan. By December 2020, the Plant has operated 15 DTY lines and will operate all 27 DTY lines in the first quarter of 2021. Quality of AA-typed products reached about 89.5%, higher than the level agreed under a cooperation contract (85%). DTY products are made from renewable, environmentally friendly materials and certified to global recycling standards by Control Union and have been used by a number of major brands such as Adidas, Target.

In 2020, DQS received 32 orders, nearly twice as much as in 2019; in which orders outside the industry and abroad accounted for 66%. It proved that DQS’s capacity has been enhanced, and customers’ confidence in DQS is increasing. 

Petrovietnam has actively proposed to remove difficulties and problems, and was approved by the competent authorities to continue implementing Thai Binh 2 Thermal Power Plant project. 

8. Continue to maintain the role and position of the country’s pillar and leading economic group, making an important contribution to socio-economic development, ensuring national security at sea

 The Group took the initiative and made efforts to overcome difficulties, paid the State budget in excess of the targets, in the unfavorable conditions of 2020. The Group’s operations were stable and continuous; in the context of epidemics, the global supply chain breakage has provided essential products for the economy such as electricity, petroleum, fertilizer, LPG, CNG… actively supporting other economic sectors to develop together. Despite the difficult period, the Group has also spent hundreds of billions dong for social secuirty work.

Through the implementation of marine oil and gas programs, activities and projects in 2020, it has made an important contribution to maintaining national security and defense. 

9. There is an important step in the implementation of Petrovietnam Culture Restoration Project 

Created a strong, synchronous and unified change in awareness and action on strengthening and building Petrovietnam Culture. Organized the background cultural training for all officers and employees of the Group and key staff of units and unions. Synchronously implemented the Culture Restoration Project from the Group to member units, attached the role and position of corporate culture in the implementation of Petrovietnam’s strategic goals.

10. The promotion of digitization and application of information technology in management has brought about high efficiency

In 2020, the Group synchronously implemented the overall strategy, plans and programs on digital transformation; built large database for fields of activity, especially E&P. The Group also connected, combined and consolidated technology infrastructure to maximize the use of the Group’s digital resources. Through the application of information technology, digitalization; organization of online conferences, seminars and transactions, the whole Group has reduced 727 billion VND. Application of information technology in management such as meeting through MS-Team; handling work through Idoc, the internet… has gradually become a habit and culture of oil and gas workers, helping to improve the Group’ss work handling speed and efficiency. 

Exploration & Production